The Formula for the Yield to Maturity, I, on a Discount

question 64

Multiple Choice

The formula for the yield to maturity, i, on a discount bond is

• A)i = (Face value - Discount price)/Discount price.
• B)i = (Discount price - Face value)/Discount price.
• C)i = (Face value - Discount price)/Face value.
• D)i = (Discount price - Face value)/Face value.

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Definitions:

Zygote

A fertilized ovum.

Neonate

Newborn.

Fetus

A developing mammal or human from the completion of its embryonic stage, specifically in humans from the ninth week after fertilization until birth.

Ovulation

The phase in the female menstrual cycle during which a mature egg is released from the ovary, making it available for fertilization.